What’s It Worth? Your Simon’s Town House!
Sep 21st, 2008 by Johan
Yes! How much is your Simon’s Town house worth?
The issue here is, "Who wants to know?"
In most cases you may want know just because you want to know, then you may want to know because you are considering the potential value of your estate. Or you want to sell your Simon’s Town property.
As we all know, "Your house is worth what the buyer is willing to pay for you house." Your house’s selling price is therefore subjective and you are not the boss to decide.
But you need to start somewhere.
Where do you start?
- The Flawed Approach: I have heard Simon’s Town homeowners tell me that they want R4 million. And when you ask why, they tell you that they have seen their neighbours house is advertised for R3.5 million. Then the add that their house is a lot more worth than the neighbour’s house. Your neighbour’s house and any Simon’s Town house advertised have not sold. This is the asking price and not the eventual selling price.
- Visiting Simon’s Town Homes For Sale: This is a good start. You go and see all the homes in your area that’s on show and you compare them to your own house. You ask the Simon’s Town real estate agent how long the property has been in the market and how much they asked for it when it came on the market. The purpose is to feed your gut feel. Generally this approach is limited to one or two homes for sale in your area because Simon’s Town’s property prices can vary significantly from suburb to suburb.
- You can ask your Simon’s Town real estate agent to do some calculations. You can either get a comparative analysis or you can get the historical selling price per square meter and apply it to your home.
- The comparative analysis allows you to compare your property with homes sold in an area and in a specific time frame. This is reasonable if we are in a stable market but as soon as we go for large corrections we need to reduce the time frame. And as soon as you reduce the time frame your number of sold homes in your are become less.
- The historical selling price per square meter of floor space is a great indicator of value. Unfortunately this measure is not readily available in South Africa. [SimonsTownRealty.Info keep such a database].
- You can get a sworn valuator in to give you a valuation.
- The Gut Feel Approach: I have mentioned this approach last because when you have taken all the above approaches in consideration it comes down to gut feel.
What are the other factors affecting gut feel (either positively or negatively)?
- How soon do you have to sell your Simon’s Town house?
- What is your outstanding bond on your home?
- What is the market doing today?
- Are you building negotiation fat into your selling price? Most people add fat but it’s been shown that it’s easier to sell a home when the home is priced right (no fat) because it’s:
- easier to negotiate up
- you open your home to the correct buyer from day one.
I hope this was helpful to you. If you want to add or comment please use the form below.
Regards
Johan Horak
It’s great to have you back. Thanks.
